Minimizing Employee Litigation Through Arbitration Agreements
Fortunately, employers can minimize many employee lawsuits and their fallout through arbitration agreements, where a neutral arbitrator hears the facts of the dispute and makes a binding ruling. A study by Alexander Colvin of Cornell University found that employers win more often in arbitration than in litigation, employee awards are less, and the proceedings move much faster.
But not all arbitration agreements are created equal. In fact, courts frequently throw out agreements that judges decide are flawed or too heavily biased in favor of employers. Employers need to understand the limits of arbitration agreements, in order to implement effective ones that will provide all the benefits they are looking for.